FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * Dudley Gardner H   2. Issuer Name and Ticker or Trading Symbol LIQUIDITY SERVICES INC [LQDT] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Pres, Capital Assets Group (Last) (First) (Middle) C/O LIQUIDITY SERVICES, INC., 1920 L STREET, N.W., 6TH FLOOR 3. Date of Earliest Transaction (Month/Day/Year) 10/06/2016 (Street) WASHINGTON, DC 20036 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 10/06/2016   S(17)   881 D $ 10.28 23,417 D   Common Stock 10/07/2016   S(17)   1,057 D $ 10.06 22,360 D   Common Stock 10/10/2016   S(17)   1,482 D $ 10.03 20,878 D

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Underlying Securities (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Employee Stock Option	$ 13.35							(1)	06/16/2020	Common Stock	3,188		3,188	D
Employee Stock Grant	$ 15.47							(2)	11/30/2020	Common Stock	2,211		2,211	D
Employee Stock Grant	$ 21.99							(3)	11/27/2023	Common Stock	416		416	D
Employee Stock Grant	$ 21.99							(4)	11/27/2023	Common Stock	1,661		1,661	D
Employee Stock Option	$ 21.99							(5)	11/27/2023	Common Stock	3,519		3,519	D
Employee Stock Option	$ 21.99							(6)	11/27/2023	Common Stock	3,519		3,519	D
Employee Stock Grant	$ 13.57							(7)	05/14/2024	Common Stock	11,054		11,054	D
Employee Stock Grant	$ 12.57							(8)	10/27/2024	Common Stock	12,500		12,500	D
Employee Stock Grant	$ 10.41							(9)	10/01/2024	Common Stock	24,291		24,291	D
Employee Stock Grant	$ 10.41							(10)	10/01/2024	Common Stock	12,146		12,146	D
Employee Stock Option	$ 10.41							(11)	10/01/2024	Common Stock	7,338		7,338	D
Employee Stock Option	$ 10.41							(12)	10/01/2024	Common Stock	1,834		1,834	D
Employee Stock Grant	$ 6.63							(13)	10/01/2025	Common Stock	15,386		15,386	D
Employee Stock Grant	$ 5.11							(14)	10/01/2025	Common Stock	5,129		5,129	D
Employee Stock Option	$ 6.63							(15)	10/01/2025	Common Stock	11,245		11,245	D
Employee Stock Option	$ 6.63							(16)	10/01/2025	Common Stock	2,811		2,811	D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
Dudley Gardner H C/O LIQUIDITY SERVICES, INC. 1920 L STREET, N.W., 6TH FLOOR WASHINGTON, DC 20036			Pres, Capital Assets Group

Signatures

/s/ Mark A. Shaffer, by power of attorney		10/11/2016
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	These options became fully vested on June 1, 2014.
(2)	These restricted shares will vest, if at all, based on the Issuer's achievement of certain financial milestones.
(3)	Twenty-five percent of this restricted stock grant vested on October 1, 2014 and thereafter 1/4th of the restricted stock grant will vest on October 1 of each year for three years.
(4)	These restricted shares will vest, if at all, based on the Issuer's achievement of certain financial milestones.
(5)	Twenty-five percent of this option grant vested on October 1, 2014 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(6)	This option becomes exercisable, if at all, based on the Issuer's achievement of certain financial milestones.
(7)	Fifty percent of this restricted stock grant vested on November 1, 2015 and thereafter 1/4th of the restricted stock grant will vest on November 1 of each year for two years.
(8)	Twenty-five percent of this restricted stock grant vested on October 1, 2015 and thereafter 1/4th of the restricted stock grant will vest on October 1 of each year for three years.
(9)	Twenty-five percent of this restricted stock grant vested on October 1, 2015 and thereafter 1/8th of the restricted stock grant will vest on April 1 and October 1 of each year for three years.
(10)	These restricted shares will vest, if at all, based on the Issuer's achievement of certain financial milestones.
(11)	Twenty-five percent of this option grant vested on October 1, 2015 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(12)	This option becomes exercisable, if at all, based on the Issuer's achievement of certain financial milestones.
(13)	Twenty-five percent of this restricted stock grant vested on October 1, 2016 and thereafter 1/4th of the restricted stock grant will vest on October 1 of each year for three years.
(14)	These restricted shares will vest, if at all, based on the Issuer's achievement of certain financial milestones.
(15)	Twenty-five percent of this option grant vested on October 1, 2016 and thereafter 1/48th of the option grant will vest each month for thirty-six months.
(16)	This option becomes exercisable, if at all, based on the Issuer's achievement of certain financial milestones.
(17)	Represents reporting person's advance election to sell to cover tax obligations upon vesting such restricted shares

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